shell company

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Shell Corporation

A company that exists as a vehicle for transactions without any independent activities or assets. Shell corporations are formed sometimes to obtain financing before they begin operations, or after a bankruptcy and business has ceased. They are also used in tax avoidance and tax evasion schemes: for example, companies may set up shell subsidiaries in tax havens and hide profits in them. See also: Reverse acquisition.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

shell company

a company whose shares are currently listed on the STOCK MARKET but which is not actively trading. The share prices of such companies are generally very low and they may offer an attractive means for a business without a stock-market listing to acquire one by TAKEOVER.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

shell company

a company that is not actively trading but that is still listed on the STOCK EXCHANGE. Such a company can be purchased in a REVERSE TAKEOVER by a company wishing to obtain a stock-exchange listing.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"We need to do custodial interrogation of Chidambaram to find out money trail as shell companies were not set up only in India but also abroad.
The central bank has said that it is monitoring money launderers that are increasingly using onshore shell companies to mask their transactions.
are exempt from the bill's requirements, because they'd be less likely to be anonymous shell companies created to hide or launder money.
The EU sanctions and "the CBC campaign to locate and close so-called shell companies have led to the closure of tens of thousands of bank accounts belonging to Russian customers in Cypriot banks while some large Russian companies have already left the island or are planning to do so."
Not defined as shell companies are holding companies of entities engaged in legitimate businesses and that have identifiable ultimate beneficial owners.
Hyderabad: In large-scale crackdown on shell companies, a team from the Ministry of Corporate Affairs discovered that 114 companies were operating from a single room in a mall in Hyderabad, causing huge financial losses to the exchequer by evading taxes.
After the Panama leaks, 'Mossack Fonseca employees frantically emailed bankers, accountants and lawyers the professionals who had hired the firm to set up shell companies for wealthy clients who wanted to remain anonymous in an attempt to close the gaps in its recordkeeping.
The task force has compiled a database of shell companies and classified them into 3 categories-- Confirmed list, Derived list and Suspect list.
The following shell companies have been recognized for having obtained loans without adhering to banking laws which are Golden Globe, Alpha Zulu, Parthenon alongside sugar mills owned by Omni Group.
The searches included some of the shell companies associated with Choksi.
An ED official requesting anonymity told IANS:"The Palam Farms in Delhi's Bijwasan was bought from the money raised through shell companies owned by Bharti and her husband."This is not the first time the couple would be quizzed by the ED.
Jaitley said the government has come out with laws to contain overseas black money as well as those dealing with domestic black money and cracking down on shell companies. The minister said the country had reconciled to a Indian normal -- a very large number of tax non-compliance and very large amount of transaction which took place outside the system.